The power losses in electric network represent significant part from the consumed energy in entire electrical system and estimated by few percents (3-10%) from the total generated power. The major part of energy lost in the electric network dissipated as heat energy which affects the performance and expected life of electrical network elements like transformers, cables and switchgears. There is a considerable heat and greenhouse gases release to atmosphere coming out from production of power in power plants to cover power losses which contribute to global warming that causes climate changes and associated phenomena.
Many of researches have been conducted and many of techniques have been applied to solve this problem (power losses). One of the most famous techniques is related to reactive power control like Flexible AC Transmission Systems (FACTS). Although these techniques might help to reduce power losses and save energy, however it is not their first priority. They are mainly focusing on improving and stabilizing the critical parameters of the network more than saving of energy from reduction of power losses. The main objective of these technologies is to tackle critical situation of transmission network like voltage stabilization, power system stability and power system quality issues which all are essential for power transfer reliability of transmission network. The energy service provider can bear the cost of some power losses in the system but never with anything affecting supply continuity and power system stability.
A common thing in all these techniques is that they are connected to one node or one substation in the system to either deliver the shortage of reactive power or absorb the surplus of reactive power in order to raise the voltage or reduce the voltage respectively. The injection of reactive power in specific node in power system will not help a lot in relieving the network form reactive power flow, so does not help to reduce power losses effectively.